Infonetics Research: Optical network hardware market hits bottom in North America; EMEA region weakens

BOSTON, MA--(Marketwire - August 17, 2009) - Communications market research firm Infonetics Research released the
second quarter (2Q09) edition of its Optical Network
Hardware report.

ANALYST NOTE

"The North American optical network hardware market showed signs of
improvement in 2Q09 with its first positive quarter since the end of 2007,
and a milder year-over-year decrease than we saw in the first quarter, a
positive trend. We're calling the bottom in North America. Still, carriers,
particularly in EMEA and North America, continue to spend carefully, and
the big question is whether these carriers will execute their typical 2H09
capex budget flush. Carriers indicate that they will, but equipment vendors
we speak with express skepticism and concern. It is very much a 'show me
the money' spending environment," says Andrew Schmitt, Infonetics Research's directing
analyst for optical.

MARKET SHARE

"On the vendor front, Huawei held the number one position again as growth
in Asia Pacific continues to bolster its market share globally. Over the
last 12 months, Huawei derived 64% of its sales from Asia Pacific, a region
that has grown while others declined. Our prediction last quarter that
Huawei would seize the title of market share leader in 2009 is looking
safe," Schmitt added.

OPTICAL NETWORK HARDWARE MARKET HIGHLIGHTS

-- From 1Q09 to 2Q09, worldwide optical network hardware revenue
increased 7% to $3.4 billion
-- The success of packet optical transport system (POTS) platforms is the
best story in the optical market for the coming years, with the segment
growing strongly mainly due to great performances from Alcatel-Lucent,
Fujitsu, and Tellabs
-- Longer term, Infonetics sees acceleration towards more WDM spending as
carriers in developing nations are showing a strong preference for the
latest generation of optical equipment
-- Carriers that used to purchase legacy equipment are starting to look
at the latest WDM, ROADM, and packet optical transport equipment in
conjunction with plans for 3G, LTE, and broadband deployments

REPORT SYNOPSIS

Infonetics' quarterly optical report
tracks Adtran, ADVA Optical, Alcatel-Lucent, BTI, Ciena, Cisco, Corrigent,
ECI, Ericsson, Fujitsu, Huawei, Infinera, NEC, Nokia Siemens Networks,
Nortel, Sycamore, Tejas Networks, Tellabs, Transmode, Turin, ZTE, Xtera,
and others.

The report provides worldwide and regional market share, market size,
forecasts through 2013, and analysis for metro and long haul optical
network equipment, including SONET/SDH (ADMs and terminals, MSPPs and
crossconnects), WDM (ROADM and transport), and POTS. The report also tracks
the number of ports and revenue per port for WDM and SONET/SDH products by
speed (Ethernet, SONET/SDH/POS, WDM), from below OC48/STM1 to 100G.

FOR MORE INFORMATION

Log on or join: http://www.infonetics.com/login

From the portal, go to RESEARCH, then OPTICAL.

FOR SALES:

-- Larry Howard, Vice President: larry@infonetics.com, +1 (408) 583-3335
-- Scott Coyne, Senior Account Director, Eastern North America, Europe,
Middle East: scott@infonetics.com, +1 408.583.3395

RELATED RESEARCH

-- ZTE, NEC take share in Asia optical network
hardware market; ZTE passes Alcatel-Lucent

-- Huawei takes the lead in optical network hardware market in
1Q09

-- Internet content providers (Google, Yahoo, MSN,
etc.) represent an exciting, small but growing segment in the optical
network hardware market

Infonetics Research is an
international market research and consulting firm serving
the communications industry since 1990. A leader in defining and tracking
emerging and established technologies in all world regions, Infonetics
helps clients plan, strategize, and compete more effectively.

Follow Infonetics on Twitter: http://twitter.com/infonetics.